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President of Russia Vladimir Putin: Mr. Alekperov, we meet fairly regularly, but there is not enough time for a substantial discussion, including one on your corporate performance. Therefore, I will be happy to listen to you. What has the company managed to accomplish?

LUKOIL CEO Vagit Alekperov: Mr. President, thank you very much for your time.

The company has been developing rather quickly. In 2017, we indexed corporate wages, and this does us credit because we index our employees’ wages every April 1.

Investment totaled almost 500 billion roubles. As I had promised you, we annually commission new high-seas platforms in the Caspian Sea. A new drilling platform was completed this year, and it is already up and running. We have also finished the second stage of the Filanovsky oil field. Another platform will be built in 2018, followed by one more in 2019. In effect, we continue to develop Caspian deposits at a good pace.

We have drafted a new project stipulating the comprehensive development of the Caspian Sea’s northern sector. Today, a gas pipeline has been built towards Budyonnovsk. We have decided to invest in the construction of a gas-chemical complex there, which will manufacture chemicals, and its second stage will turn out polyethylene and polypropylene.

This makes it possible to develop the sufficiently depressive southern section of Stavropol Territory, which is hard pressed for companies and jobs. This complex will cost almost 120 billion roubles, and it will employ 600 workers and over 3,000 builders.

The investment project has been approved, and preparations are now underway. The Government has issued instructions. I am telling you this because we are now working at Government level. I hope that all issues will be resolved. Local authorities support the project.

We continued the comprehensive modernisation of our refineries.

Vladimir Putin: You have done this on time.

Vagit Alekperov: Yes, we are proud that this has been accomplished today. This makes it possible to provide Russia with top-quality fuel on a regular basis …

Vladimir Putin: And this makes it possible to convert to new fuel.

Vagit Alekperov: In 2017, we started producing new quality Ekto-100 petrol. Its octane number is already 100, rather than 95 or 98. This makes it possible to save petrol, and vehicle engines respond well to this environmentally friendly fuel. So, all projects have been completed.

I would like to show the configuration of the future energy-chemical complex (Shows material). We have completed a large-scale marketing project. This diagram shows the direction of feedstock deliveries, as well as product exports and their sales on the domestic market, because Stavropol and Krasnodar territories remain our agricultural regions.

Vladimir Putin: Will you load this in Novorossiisk?

Vagit Alekperov: Yes, this port is located en route. The sites have already been allotted. Here is our large operational chemical complex, we have built a power station here, and we are preparing this absolutely new construction site. The entire chain will be implemented. Of course, this facilitates Stavropol Territory’s substantial development.

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